Shares of Indiabulls Housing Finance on Thursday closed 11.78% higher after a petition alleging misappropriation of funds was withdrawn from the Supreme Court. In fact, share prices of all Indiabulls group companies rallied. Indiabulls Real Estate ended 5.06% higher, Indiabulls Ventures rose 12.2% and Indiabulls Integrated Services ended 4.98% higher.
Abhay Yadav, who had filed a petition against promoter Sameer Gehlaut and the company alleging fund misappropriation, has withdrawn the same. Yadav in his affidavit said, “That I am not aware of the contents and allegations mentioned in the complaints or the petition. I now realise that such papers, affidavits, applications, etc signed by me have been misused to file false complaints and petitions against Indiabulls with malafide intentions.”
The affidavit also said, “Four shares of Indiabulls were purchased in my name in May 2019 and thereafter I was asked to sign a detailed bulky complaint which was addressed to various government officials, ministers. etc.”
On Wednesday, the Indiabulls Housing Finance stock had fallen 7.93% because of concerns over alleged misappropriation of around Rs 98,000 crore funds.
“The total loans on the books of Indiabulls Housing are approx `90,000 crore. The allegation of siphoning off of `98,000 crore is bizarre. Indiabulls had submitted to the Supreme Court that petitioner Abhay Yadav bought 4 shares of Indiabulls worth `3,000 on May 9, 2019 with the sole purpose of blackmail and extortion.
“Without seeking remedy at appropriate forum for grievances, the petitioner Abhay Yadav chose to file a plea in Supreme Court under Article 32 to damage the company and that the petitioner wilfully and intentionally is not coming forward and mentioning the writ petition as he doesn’t want the petition to be heard on merits.”
In Q4FY19, Indiabulls Housing Finance reported stable performance despite weak real estate sentiment and systemic liquidity concerns. “H2FY19 was challenging, particularly for real estate-affiliated players. However, IHFL has navigated it well with steady performance, resetting strategy, resorting to sell-down, increasing balance sheet liquidity, raising rates, etc,” Edelweiss had earlier said in a report.